March 6, 2008, Introduced by Rep. McDowell and referred to the Committee on Tax Policy.
A bill to amend 1893 PA 206, entitled
"The general property tax act,"
by amending section 7o (MCL 211.7o), as amended by 2006 PA 681.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7o. (1) Real or personal property owned and occupied by a
nonprofit charitable institution while occupied by that nonprofit
charitable institution solely for the purposes for which that
nonprofit charitable institution was incorporated is exempt from
the collection of taxes under this act.
(2) Real or personal property owned and occupied by a
charitable trust while occupied by that charitable trust solely for
the charitable purposes for which that charitable trust was
established is exempt from the collection of taxes under this act.
(3) Real or personal property owned and occupied by a
fraternal or veterans organization whose membership policies do not
violate the Elliott-Larsen civil rights act, 1976 PA 453, MCL
37.2101 to 37.2804, and used by that fraternal or veterans
organization for nonprofit charitable purposes is exempt from the
collection of taxes under this act, except taxes levied for school
operating purposes under section 1211 of the revised school code,
1976 PA 451, MCL 380.1211. Property used for commercial or for-
profit purposes is presumed not to be used for nonprofit charitable
purposes. This state shall annually reimburse each local tax
collecting unit for any revenue lost as a result of the exemption
under this subsection.
(4) (3)
Real or personal property owned by
a nonprofit
charitable institution or charitable trust that is leased, loaned,
or otherwise made available to another nonprofit charitable
institution or charitable trust or to a nonprofit hospital or a
nonprofit educational institution that is occupied by that
nonprofit charitable institution, charitable trust, nonprofit
hospital, or nonprofit educational institution solely for the
purposes for which that nonprofit charitable institution,
charitable trust, nonprofit hospital, or nonprofit educational
institution was organized or established and that would be exempt
from taxes collected under this act if the real or personal
property were occupied by the lessor nonprofit charitable
institution or charitable trust solely for the purposes for which
the lessor charitable nonprofit institution was organized or the
charitable trust was established is exempt from the collection of
taxes under this act.
(5) (4)
For taxes levied after December 31, 1997,
real or
personal property owned by a nonprofit charitable institution or
charitable trust that is leased, loaned, or otherwise made
available to a governmental entity is exempt from the collection of
taxes under this act if all of the following conditions are
satisfied:
(a) The real or personal property would be exempt from the
collection of taxes under this act under section 7m if the real or
personal property were owned or were being acquired pursuant to an
installment purchase agreement by the lessee governmental entity.
(b) The real or personal property would be exempt from the
collection of taxes under this act if occupied by the lessor
nonprofit charitable institution or charitable trust solely for the
purposes for which the lessor charitable nonprofit institution was
organized or the charitable trust was established.
(6) (5)
Real property owned by a qualified
conservation
organization that is held for conservation purposes and that is
open to all residents of this state for educational or recreational
use, including, but not limited to, low-impact, nondestructive
activities such as hiking, bird watching, cross-country skiing, or
snowshoeing is exempt from the collection of taxes under this act.
As used in this subsection, "qualified conservation organization"
means a nonprofit charitable institution or a charitable trust that
meets all of the following conditions:
(a) Is organized or established, as reflected in its articles
of incorporation or trust documents, for the purpose of acquiring,
maintaining, and protecting nature sanctuaries, nature preserves,
and natural areas in this state, that predominantly contain natural
habitat for fish, wildlife, and plants.
(b) Is required under its articles of incorporation, bylaws,
or trust documents to hold in perpetuity property acquired for the
purposes described in subdivision (a) unless both of the following
conditions are satisfied:
(i) That property is no longer suitable for the purposes
described in subdivision (a).
(ii) The sale of the property is approved by a majority vote of
the members or trustees.
(c) Its articles of incorporation, bylaws, or trust documents
prohibit any officer, shareholder, board member, employee, or
trustee or the family member of an officer, shareholder, board
member, employee, or trustee from benefiting from the sale of
property acquired for the purposes described in subdivision (a).
(7) (6)
If authorized by a resolution of
the local tax
collecting unit in which the real or personal property is located,
real or personal property owned by a nonprofit charitable
institution that is occupied and used by the nonprofit charitable
institution's chief executive officer as his or her principal
residence as a condition of his or her employment and that is
contiguous to real property that contains the nonprofit charitable
institution's principal place of business is exempt from the
collection of taxes under this act.
(8) (7)
A charitable home of a fraternal or veterans
organization or secret society, or a nonprofit corporation whose
stock
is wholly owned by a religious society
or fraternal society
or veterans organization that owns and operates facilities for the
aged and chronically ill and in which the net income from the
operation of the corporation does not inure to the benefit of any
person other than the residents, is exempt from the collection of
taxes under this act.
(9) (8)
Real and personal property owned
and occupied by a
nonprofit corporation that meets all of the following conditions is
exempt from the collection of taxes under this act:
(a) The nonprofit corporation is exempt from taxation under
section 501(c)(3) of the internal revenue code, 26 USC 501.
(b) The nonprofit corporation meets 1 of the following
conditions:
(i) Is a skilled nursing facility or home for the aged,
licensed under the public health code, 1978 PA 368, MCL 333.1101 to
333.25211, or is an adult foster care facility licensed under the
adult foster care facility licensing act, 1979 PA 218, MCL 400.701
to 400.737. As used in this subparagraph:
(A) "Adult foster care facility" means that term as defined in
section 3 of the adult foster care facility licensing act, 1979 PA
218, MCL 400.703.
(B) "Home for the aged" means that term as defined in section
20106 of the public health code, 1978 PA 368, MCL 333.20106.
(C) "Skilled nursing facility" means that term as defined in
section 20109 of the public health code, 1978 PA 368, MCL
333.20109.
(ii) Provides housing, rehabilitation services, diagnostic
services, medical services, or therapeutic services to 1 or more
disabled persons. As used in this subparagraph, "disabled person"
means that term as defined in section 7d.
(c) The nonprofit corporation meets either of the following
conditions:
(i) The real and personal property of the nonprofit corporation
was being treated as exempt from the collection of all taxes under
this
act on the effective date of the amendatory act that added
this
subsection January 10, 2007.
(ii) The real and personal property of the nonprofit
corporation had been treated as exempt from the collection of all
taxes under this act on December 31, 2004 and there has been no
transfer of ownership of that property during the period of time
beginning
the last day the property was treated as exempt until the
effective
date of the amendatory act that added this subsection
January 10, 2007. As used in this sub-subparagraph subparagraph,
"transfer of ownership" means that term as defined in section 27a.
(10) (9)
If real or personal property owned
and occupied by a
nonprofit corporation is not eligible for an exemption under
subsection
(8) (9), that nonprofit corporation is not precluded
from applying for exemption under subsection (1).
(10) As used in this section:
(a) "Charitable trust" means a charitable trust registered
under the supervision of trustees for charitable purposes act, 1961
PA 101, MCL 14.251 to 14.266.
(b) "Fraternal or veterans organization" means an organization
within this state, except a college fraternity or sorority, that
meets all of the following requirements:
(i) Is not organized for pecuniary profit.
(ii) Is a branch, lodge, or chapter of a national or state
fraternal or veterans organization.
(iii) Exists for the common purpose, brotherhood, or other
interests of its members.
(c) (b)
"Governmental entity"
means 1 or more of the
following:
(i) The federal government or an agency, department, division,
bureau, board, commission, council, or authority of the federal
government.
(ii) This state or an agency, department, division, bureau,
board, commission, council, or authority of this state.
(iii) A county, city, township, village, local or intermediate
school district, or municipal corporation.
(iv) A public educational institution, including, but not
limited to, a local or intermediate school district, a public
school academy, a community college or junior college established
pursuant to section 7 of article VIII of the state constitution of
1963, or a state 4-year institution of higher education located in
this state.
(v) Any other authority or public body created under state
law.
(d) (c)
"Public school academy"
means a public school academy
organized under the revised school code, 1976 PA 451, MCL 380.1 to
380.1852.